The stock market held solid gains in afternoon trading Friday as the main indexes rose to — what else — fresh all-time highs.
The relative strength line is near the lows of the six-week basing period, which shows considerable lag and reason to be suspicious of the breakout. A similar weakness has occurred in breakouts of Wal-Mart (WMT) and Apple (AAPL), two other Dow components.
The S&P 500 and Nasdaq composite stepped up 0.6%, both holding near session highs in the final hour of trading. The Russell 2000 lagged with a 0.3% gain but still made a record high Friday. Volume on the NYSE and Nasdaq was tracking slightly lower compared with the same time Thursday.
Machinery, department store, airline, aerospace and software industry groups were at the top of an eclectic leadership in today’s market.
Seagate (STX) broke out of a long cup-without-handle base with a 51.06 buy point. Volume was tracking double its average, a good sign. The relative strength line, however, is lagging the price’s move to new highs. Reports say the disk drive maker made an early investment in a cryptocurrency called Ripple that had soared in value lately.
In the semiconductor sector, Marvell Technology (MRVL) and Microsemi (MSCC) broke out of bases. Marvell jumped past the 23.74 buy point of a cup with handle in volume about double its normal pace. Microsemi edged above a 58.07 buy point in a long consolidation. But volume was lackluster. For both chip stocks, the RS line is lagging.
Regional banks continued a parade of breakouts. Heritage Commerce (HTBK) was trying to hold above its 16.73 buy point. Breakout attempts for First Midwest Bancorp (FMBI) and Bancorpsouth Bank (BXS) lacked much energy.
Online lender Curo Group Holdings (CURO) broke out from its first base since it went public Dec. 7 at 14 a share. The IPO base had a buy point at 15.09, and shares were in buy range in late trading. The company posted earnings of 54 cents a share in 2015 and $1.46 in 2016, and for 2017 expectations are for EPS of $1.80.